How Do I Void a Client Credit Memo

Overview

Voiding a client credit memo permanently cancels it and reverses all of its financial effects. Use this when a credit memo was sent in error or is no longer owed to the client. Once voided, a credit memo is locked — it cannot be edited, applied to invoices, or moved to another status.

Void vs. Delete: If the credit memo has not been sent yet, you don't need to void it — simply delete it instead. Voiding exists for credit memos that have already been sent to the client and therefore need a documented, auditable reversal.

Prerequisites

Three conditions must be satisfied before a credit memo can be voided:

Credit Memo Status: The credit memo must have been sent. Only credit memos in Sent or Fully Applied status qualify. Credit memos in Not Sent status should be deleted instead.
Fiscal Period: The fiscal period containing the credit memo must still be open. Credit memos in closed periods cannot be voided.
Documentation: A reason for voiding is required before you can proceed.

Steps to Void a Credit Memo

Step 1: Access the Credit Memo

Navigate to Revenue > Credits and select the credit memo you want to void. The red Void button appears in the upper right of the page when the conditions above are met.

Step 2: Initiate the Void

Click Void. A confirmation dialog appears, reminding you that voiding is permanent, that the credit memo will be unapplied from any client invoices, and that a notification email will be sent to the client account.

Step 3: Provide a Reason

Enter the reason for voiding in the Reason field. This is for internal use only — it is stored on the credit memo record and is not shown to the client. The Void Credit Memo button stays disabled until a reason is entered. Click Void Credit Memo to finalize.

A reason is required in order to void a credit memo.

Post-Void Changes

Once voided:

The status changes to Voided, and the Voided At timestamp and Void Reason are displayed on the credit memo.
The credit memo is automatically unapplied from any client invoices it was applied to. Those invoices' balances increase accordingly.
The charges on the credit memo become available to bill again.
Any rebates on the credit memo reset to Ready status so they can be awarded again.
QuickBooks Online: if your tenant syncs client invoices with QuickBooks, the credit memo is deleted from QuickBooks Online (QuickBooks does not support voiding credit memos). Journal entries that were not yet posted are removed; posted journal entries receive reversing entries.
An email notification is sent to the email addresses on the client account.
The activity log records the void, including who performed it and when.

Additional Notes

Voiding is permanent. A voided credit memo can never transition to another status, be edited, or be applied to a client invoice.
Voided credit memos and their line items are excluded from all financial reports.
Voided credit memos remain visible on the Credits page and can be found by filtering the Status column to Voided.

If you have additional questions or need more in depth information, please feel free to send us a message using the help beacon in the lower right-hand corner.